Price bar charts paint a graphic picture of a stock's price movements both during the day with the 5 minute bars, and longer term with the daily bars. The picture unfolds showing short and long term supply and demand and how it has moved the stock's price. This helps pinpoint specific areas of buying or selling pressure as they develop. The bar charts alert you this „at a glance“ when the bars trade into a tight range that hugs up or down against a certain price (usually the day's current high or low).

We owe a debt of thanks to a legendary seventeenth-century Japanese rice broker, Munehisa Homma, who was one of the first Japanese traders to use price history to predict price future. Referred to as „the god of the markets,“ Homma amassed a huge fortune, and as legend has it, he made 100 consecutive winning trades. His trading theories and principles evolved into the candlestick charting techniques we use today.

For now, we're going to explore some major candlestick patterns that when used properly, can produce tidy profits.

Price bar charts paint a graphic picture of a stock's price movements both during the day with the 5 minute bars, and longer term with the daily bars. The picture unfolds snowing short and long term supply and demand and how it has moved the stock's price. This helps pinpoint specific areas of buying or selling pressure as they develop.